Etsy Inc (ETSY)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	2,033,778	1,985,872	1,956,577	1,933,099	1,919,702	1,914,603	1,887,196	1,860,672	1,821,519	1,748,226	1,706,927	1,673,144	1,674,602	1,633,004	1,585,545	1,522,970	1,260,880	973,479	771,167	576,301
Revenue (ttm)	US$ in thousands	2,808,332	2,798,492	2,772,384	2,753,454	2,748,377	2,713,296	2,671,463	2,627,722	2,566,111	2,476,009	2,413,969	2,357,734	2,329,114	2,229,330	2,148,379	2,048,216	1,725,625	1,378,268	1,124,737	877,095
Gross profit margin		72.42%	70.96%	70.57%	70.21%	69.85%	70.56%	70.64%	70.81%	70.98%	70.61%	70.71%	70.96%	71.90%	73.25%	73.80%	74.36%	73.07%	70.63%	68.56%	65.71%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,033,778K ÷ $2,808,332K
= 72.42%

Etsy Inc's gross profit margin has shown a generally increasing trend over the periods from March 31, 2020, to December 31, 2021. The margin consistently improved from 65.71% in March 2020 to a peak of 74.36% in March 2021 before slightly declining to 71.90% by December 2021. This indicates the company's ability to efficiently generate profit from its revenue after accounting for the cost of goods sold.

However, from March 31, 2022, to December 31, 2024, Etsy Inc's gross profit margin has trended slightly downwards, although it remained relatively stable within the range of 69.85% to 72.42%. This suggests that there may have been some pressure on the company's ability to maintain the same level of profitability relative to its revenue during these periods.

Overall, Etsy Inc has demonstrated a historically healthy gross profit margin, which is a key indicator of its operational efficiency and pricing strategy in managing production costs. Monitoring this ratio over time can provide insights into the company's performance and competitiveness in the market.